U.S. Stocks Close On Firm Note

U.S. stocks shrugged off a weak start on Tuesday and despite staying a bit sluggish at times, kept moving higher and eventually ended the day’s session on a firm note.

The major averages all finished with solid gains. The Dow, which dropped to 32,641.85 at the start, ended the session with a gain of 264.36 points or 0.8 percent at 33,180.14, nearly 30 points off the day’s high of 33,207.45.

The S&P 500 settled with a gain of 39.25 points or 0.95 percent at 4,160.68, recovering well from an early low of 4,080.19. The Nasdaq, which drifted down to 11,888.61 in early trades, ended higher by 113.86 points or 0.94 percent at 12,175.23.

Worries about slowing growth, a weak margin guidance from Target, and a sell-off in the technology space contributed to market’s weakness in early trades. However, top technology stocks recovered subsequently and the broad market too started climbing higher.

Strong buying in the energy section following a surge in crude oil prices contributed significantly to market’s positive close.

Shares of retailer Khol’s Corporation soared nearly 10 percent, riding on reports about a potential takeover bid from Franchise Group.

Salesforce.com, Chevron, Caterpillar, United Health, Honeywell International, Nike, Apple and American Express gained 1 to 2.5 percent.

Microsoft, Boeing, Verizon, P&G, Johnson & Johnson, Merck and Coca-Cola also closed notably higher.

Target shares ended lower by 2.3 percent, weighed down by the company’s weak earnings guidance. Walmart shares dropped by about 1.25 percent.

In U.S. economic news, a report from the Commerce Department showed the U.S. trade deficit narrowed significantly in the month of April.

The report said the trade deficit narrowed to $87.1 billion in April from $107.7 billion in March. Economists had expected the deficit to shrink to $89.5 billion from the $109.8 billion originally reported for the previous month.

In overseas trading, Asian stocks ended mixed on Tuesday after a sell-off in the U.S. bond market overnight fueled anxiety about a possible economic slowdown.

European stocks closed broadly lower on Tuesday amid concerns about inflation, slowing growth and looming interest rate hikes. The pan European Stoxx 600 slid 0.28 percent. The U.K.’s FTSE 100 edged down 0.12 percent, Germany’s DAX drifted down 0.66 percent and France’s CAC 40 shed 0.74 percent.

In commodities trading, West Texas Intermediate Crude oil futures for July ended higher by $0.91 or about 0.8% at $119.41 a barrel.

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